What is the minimum allocation for Tata Asset Management's new fund?

The fund maintains a minimum 25% allocation to equities and debt.

How does the new SIF framework benefit investors?

The SIF framework allows for more sophisticated, well-regulated investment strategies.

Can the new investment strategy invest in REITs?

Yes, the strategy can invest in REITs and InvITs.

Home / Business and Economy / Smart Investment Fund Targets Market Volatility

Smart Investment Fund Targets Market Volatility

26 Nov, 2025

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Summary

Fund maintains a minimum 25% allocation to equities and debt.
Utilizes short strategies and arbitrage to cushion risks.
New SIF framework creates room for sophisticated, regulated strategies.

Smart Investment Fund Targets Market Volatility

A novel investment fund strategy has been launched, focusing on balancing market participation with risk mitigation. This fund commits a minimum of 25% to equities and debt, alongside a maximum of 25% unhedged exposure to short instruments. This unique blend allows for potential gains from market upturns while employing hedging techniques to soften downturns.

The strategy also incorporates debt investments and can include REITs and InvITs. The objective is to offer investors a sophisticated, yet regulated, investment vehicle that can adapt to fluctuating market conditions. This approach aims to provide participation in upside while offering protection against downside.

Anand Vardarajan, Chief Business Officer at Tata Asset Management, highlighted that the introduction of the SIF framework signifies a major advancement in India's investment sector. He emphasized the company's dedication to creating products that meet diverse investor needs, grounded in prudence and long-term wealth creation, acknowledging that market volatility is an inherent characteristic.